China NEV sales hit record penetration in September as export tax rebate is cut

· Energy · China

China's new energy vehicle market set records in September even as retail sales softened. CAAM data show NEV sales rose 13.6% year-on-year to 1.823 million units, with battery-electric sales reaching a record 1.277 million, as export growth offset a domestic decline. CPCA data separately show retail NEV sales fell 16.7% year-on-year to 1.084 million, the ninth straight monthly decline, while penetration hit a record 67%. Separately, China will cut the export VAT rebate rate for NEVs from 13% to 9% starting April 1, 2027, testing the profitability of automakers' overseas expansion.

Why it matters：China is the world's largest EV market, so its domestic demand slowdown and export incentive changes ripple through global automaker strategy, battery supply chains and overseas pricing.

Key points

  • CAAM: September NEV sales rose 13.6% year-on-year to 1.823 million; BEV sales hit a record 1.277 million.
  • CPCA: retail NEV sales fell 16.7% year-on-year to 1.084 million, a ninth straight monthly decline, with penetration at a record 67%.
  • Export VAT rebate for NEVs will drop from 13% to 9% from April 1, 2027.

Sources (original reporting)

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